History, or at least precedence, was made Tuesday evening when the Benicia City Council denied Valero a land use permit to bring in volatile Bakken and Tar Sands crude oil from North Dakota and Canada by train.
In what appeared to observers to be a stunning change of heart, the council unanimously agreed with the Planning Commission’s earlier recommendation to reject Valero’s project permit.
With other Northern California cities —and San Luis Obispo—watching carefully, the council’s action set a precedence and reaffirmed a city’s right to regulate local land use and protect the health and safety of its citizens.
The decision may have marked the first significant rejection by a California small town of a fossil fuel company’s proposed major business expansion, and probably notes the diminishing power of the industry in local and state politics.
Interestingly enough, the most prominent rejection by a small town of an oil company’s intended expansion occurred in Denton, Texas. Denton, a quiet and prosperous suburb of Dallas, in the middle of America’s oil patch, banned fracking (a method of shale gas extraction that uses large amounts of water pumped at high pressure into channels drilled into rock to release gas) within the city limits in 2014.
Benicia council’s decision has signaled the city’s first steps away from its past dependence on the fossil fuel industry and its Company Town identity, and marks a tentative step toward a new reality. While local, the decision was significant and reflects the growing momentum of the megatrend known as the Green Industrial Revolution, which is replacing carbon dependent economies with those powered by renewable energy.
Despite the decision, and for years to come Benicia’s tax revenue will still be highly dependent on fossil fuel, and so the developments of the Green Industrial Revolution with its twin drivers of carbon emission reduction and non-carbon energy expansion will have enormous consequences. As the Green Industrial Revolution expands, it will lead to the decline of the fossil fuel industries and correspondingly to the reduction of Benicia’s tax base and carbon-dependent economy.
Here are some other recent events furthering this expansion, and while not local, all have a bearing on Benicia’s future.
The first event happened at the recent G20 meeting in Hangzhou, China. The G20 meeting, which occurs annually, brought together the world’s 20 major economies to discuss international problems and potential policies and solutions. Leaders from the U.S., the European Union, China, Japan and Russia among others, came together for the two-day summit. Next year’s meeting is in Germany.
Woodrow Clark, my writing/business partner, is a member of the B20, a G20 subgroup that focuses on international business and economic issues. As a member of the group that delivered a policy report at the Hangzhou meeting, Woody had a front row view of the historic G20 meeting. Among the policy discussions that the meeting generated, there were some remarkable initiatives. One was that Russia agreed to join the US and China, along with the EU in addressing climate change. I imagine that India will also commit to GHG reductions next year at the G20 meeting in Germany.
This is an expansion of the initial US/China agreement from December’s UN Climate Conference in Paris. It increases the pressure on the fossil fuel industry, which is already beset by plunging oil prices, corrupt and chaotic politics, and furthers the rapid development of non-carbon renewable energy. Its impact on Benicia is indirect, unlike a report from Japan’s Eneco Holdings, LTD, which was part of the G20 Executive Talk Series. (Here’s the link to the vertical edition http://g20executivetalkseries.com )
A second development was also part of the G20 meeting and featured the showcasing of a remarkable chemical breakthrough by Eneco Holdings, LTD, from Japan. The company has the potential to be one of Asia’s largest energy companies with their development of a nano-emulsion technology. It appears that the company has succeeded in making a “complete fusion” between water and oil through the ultra-miniaturization of components at the molecular level. In simple terms, they have succeeded, where all others have failed, in mixing water and oil into a combustible fuel. The result is a mixture that is 70 percent water and stable enough to be a used in internal combustion engines. Further, it is safe and environmentally friendly, emitting about half the carbon, nitrous oxide, and sulfur dioxide released in traditional internal combustion gasoline and diesel combustions. Additionally, when produced in large quantities it will be significantly cheaper than conventional gasoline and diesel.
Originally produced for the Japanese market, Eneco’s Plasma Fusion fuel is being tested and used in China and other parts of Asia. With clean emissions levels, it is ideal for the heavily polluted Asian megacities, and should rapidly grow into a viable alternative to conventional gasoline and diesel. Just imagine how healthy West Oakland’s port area would be without its diesel contaminates? Regardless, this emulsion fuel will be a transitional fuel to hydrogen powered vehicles.
The third development that will have a significant impact on the fossil fuel industries is the continual plunge in the price of solar panels. Last week at a meeting, a solar developer told me that panel prices are now the lowest they have ever been in California, plus they are functioning at their highest levels of efficiency.
Driven by the economic principle of Zero Cost Margins—once the equipment is paid for, the rest of the energy is free—solar and renewable energy are expanding at the rate of Moore’s Law, or doubling about every 18 months. Developing and developed nations are rapidly adopting renewable energy, mostly wind and solar, as a replacement for fossil fuels. In about 20 areas in the world, particularly in Asia, solar and renewable energy are less expensive than fossil fuel. Even Saudi Arabia and United Arab Emirates are developing large solar power generation sites.
Because of Russian aggression and threats of shutting off the natural gas supply, Europe has accelerated its transition from fossil fuel and atomic energy to wind and solar. Germany is a major user of solar energy despite the northern climate, and the United Kingdom is building the world’s biggest offshore wind farm called Hornsea off the Yorkshire coast. Hornsea will be the world’s first offshore wind farm to exceed 1 GW in capacity and will produce enough energy to power well over 1 million homes.
Closer to home, the United States’ Pacific coastline has enough wind and tidal resources to power most of the nation’s needs, and by adding solar to the mix, the U.S. could easily generate enough electricity for centuries to come. Roughly speaking, wind power costs about 2 to 4 cents per kilowatt hour and solar about 5 to 6 cents. PG&E charges around 22 to 24 cents per kilowatt hour, so it’s just a matter of time before on-site or distributive energy overtakes traditional energy delivery.
Further, the carbon industries and the large central utilities have flawed business models that are dependent on ever increasing growth and they cannot adapt to the lower prices available from renewable energy, or the increasing efficiency of vehicles and buildings. This is why Clark and I have written extensively on energy cost deflation and the shrinkage and decline of the carbon industries and the large central utilities.
Finally, we come to Sept. 8’s monumental signing by Gov. Jerry Brown of Senate Bill 32, the legislation that has catapulted California into a leadership role of the international efforts to slow global warming. SB 32 will force the state’s trillion-dollar economy, one of the biggest in the world, into a much smaller carbon footprint. In fact, the legislation requires the state to slash greenhouse gas emissions to 40 percent below 1990 levels by 2030, a much more ambitious target than the previous goal of hitting 1990 levels by 2020. Cutting emissions will affect nearly all aspects of our lives, accelerating the growth of renewable energy, prodding people into buying electric autos, and pushing developers into building denser communities connected to mass transit. (Details: http://www.latimes.com/politics/la-pol-ca-jerry-brown-signs-climate-laws-20160908-snap-story.html ).
One other key element to California’s pursuit of clean air and reduced greenhouse gases is the state’s cap-and-trade program. The program requires the state’s heavy polluters to buy carbon offsets, or credits, to release emissions into the atmosphere, creating an additional operating cost for the oil and utility industries.
SB 32’s and the expansion of cap-and-trade will have dramatic impacts on the state’s fossil fuel industries. Likely many of us are driving our last conventional gasoline powered vehicle, with the next one probably powered by electricity or hydrogen. It’s not hard to predict that since the Bay Area’s refineries are the heaviest of the area’s polluters, that the combination of reduced revenue from shrinking demand and increased costs of production and operation will eventually lead to refinery closings.
The fossil fuel industries won’t give up easily, there’s trillions of dollars at stake. Many of the industries leaders and the more prescient investment bankers know that the fossil fuel era has peaked and started to decline, which is why Russia overran the Crimea and is poised to take over Ukraine. Which is why the U.S. and Canada are being besieged by the fossil fuel interests to ignore or eliminate environmental and safety protections that hamper production.
Which is why Valero pushed so hard to transport volatile Bakkan crude by rail cars through the densely populated Sacramento corridor and cram the trains into Benicia and a refinery that is not designed or equipped to deal with them. The industries, the refineries and all connected to the fossil fuel era, know that the incredibly lucrative period when oil was king and black gold flowed from the sand is coming to an end.
Bringing this back to Benicia, we see a city that is dependent on Valero for tax revenue and its governing process glimpsing a new reality. Small cities like Benicia that have been so dependent on the fossil fuel industries for so much and for so long, struggle to change. Other cities like those in the deindustrialized Midwest that have suffered sudden collapses of their major companies and tax bases have had to reinvent their economic drivers or just blow away. But it’s hard for a city like Benicia with its apparent prosperity and ease of living to understand that its fossil fuel base is in decline and that the future is elsewhere.

Grant Cooke is a longtime Benicia resident and CEO of Sustainable Energy Associates. He is also an author and has written several books on the Green Industrial Revolution. His newest is “Smart Green Cities” by Routledge.

Comments

“Many of the industries leaders and the more prescient investment bankers know that the fossil fuel era has peaked and started to decline, which is why Russia overran the Crimea and is poised to take over Ukraine”
And I thought it had to do with Putin’s desire to keep former satellite countries of the USSR out of NATO and the EU. Silly me.

If you look at Eneco’s website they make claims for their fusion fuel for external not internal combustion only (boilers, ships, etc. ).

From the above post:
“Benicia council’s decision has signaled the city’s first steps away from its past dependence on the fossil fuel industry and its Company Town identity, and marks a tentative step toward a new reality. While local, the decision was significant and reflects the growing momentum of the megatrend known as the Green Industrial Revolution, which is replacing carbon dependent economies with those powered by renewable energy”

“The new reality” is here, it is called climate change. Mr. Cooke is correct there will be a transition. Per the article below it may have to be sooner rather than later. Mayor Patterson and the city council (with Hughes, Schwartzman and Strawbridge finally seeing the light on crude-by-rail) are already far ahead of most other community’s with a General Plan; Climate Action Plan and a Sustainability Commission to guide us forward. By the way since we are in a election period—all of these forward looking actions were either initiated or lead by Elizabeth Patterson, if memory serves.

From the article below:

More serious news and information for Mr. Cooke, city staff, our citizenry and our appointed and elected leaders to seriously ponder…

“Actually, I’m a businessman, not an academic. My business is emerging technologies, energy diagnostics., and now, water technologies. My thoughts are derived from the objective analysis of evolutionary markets, venture funding, and cutting edge science. There’s not much theory in any of this and I put my sweat and capital into emerging technologies., applying science and engineering breakthroughs to everyday life.”

Question:

Mr. Cooke you stated above that you are a businessman. From your perspective how will your” sweat and capital and emerging technologies” mitigate our accelerating climate change crisis? The post below paints a more realistic–some might say– a bleak picture of our immediate and long term future?

I would be interested in your comments.

From the post below:

” A major problem is that global warming, as with the associated environmental problems, can’t be solved within the capitalism that has caused, and is accelerating, the problem. All incentives under capitalism are for more growth and thus more greenhouse-gas emissions, and there is no provision to provide new jobs for the many people who would be displaced should the heavily polluting industries in which they work were to be shut down in the interest of the environment. The private capital that profits from environmental devastation is allowed to externalize the costs onto society, an inequality built into the system. The concept of “green capitalism” is a dangerous chimera.”

“There is no alternative to a dramatic change in the organization of the global economy and consumption patterns. That means significant reductions in energy consumption, an impossibility within a system that requires constant, unending growth. The rosy predictions of magical technology that will allow business as usual while scrubbing the atmosphere of new greenhouse gases, relied upon in the Intergovernmental Panel on Climate Change report that was in turn the basis for the Paris climate summit pledges, are not realistic, environmentalists say, and thus an illusion. Earth’s environment is crossing multiple points of no return — business as usual is impossible.”

It does appear Grant “Mr. Enviro Greenie” Cooke has changed his story. No longer says the refineries will be gone in two decades. He now uses the term for years to come that Benicia revenue will be relied on fossil fuel. I thought in two decades it was gone. The enviro greenie does not understand the revolution that has been going on in California since about 1950. His article is pure academia at its worst. As I have said before he is in a Dreamland of Fantasy

Actually, I’m a businessman, not an academic. My business is emerging technologies, energy diagnostics., and now, water technologies. My thoughts are derived from the objective analysis of evolutionary markets, venture funding, and cutting edge science. There’s not much theory in any of this and I put my sweat and capital into emerging technologies., applying science and engineering breakthroughs to everyday life.

The refineries will be gone at some point, most likely 100 years out. 20 years from now? No way. Economics will not allow it.

Humanity needs low cost food, energy, transportation in order to survive. Artificially raising the price of carbon compounds in order to bend the supply/demand curve is inhumane to poor societies. It will cause human suffering.

There is no reason to panic and force a quick solution to the global warming situation. The Earth is not fragile and has proven that it can manage change. In 100+ years, battery technology will be advanced and clean. Solar panels will be much more efficient and practical. Other clean energy generation will be available and economical. As a result, carbon compound based energy will diminish.

These “chicken little” environmentalists are hurting their cause. For the last 30 years they have been claiming the Earth was ending within 10 years … They are so obviously wrong and now people view them as hysterical political entities. We need to develop clean, economical energy sources. Capitalism will have its say and when the new energy sources become economically viable, they will dominate. Will this happen in 20 years? History says this is very doubtful.

Oops. Don’t they know oil and gas are supposed to be gone in 10 years?

The US Geological Survey said Tuesday that it found what could be the largest deposit of untapped oil ever discovered in America.

An estimated average of 20 billion barrels of oil and 1.6 billion barrels of natural gas liquids are available for the taking in the Wolfcamp shale, which is in the Midland Basin portion of Texas’ Permian Basin….

Stories of new oil finds, such as the one in the one in the Permian Basin, pop up every few years, usually with little fanfare. Each time these stories do come up it gives further credence to the Abiogenic petroleum theories of Thomas Gold (and others before him).